Hyderabad: Controlled, moderate regulation on crypto currency stressed

Hyderabad: A moderately regulated control of the crypto currency is better as long as it's not stifling, said speakers on Thursday at a seminar on crypto currency trading and the Centre's proposed law. The Legal Care Centre, Hyderabad, organised the seminar on 'Trading of Crypto Currencies and Parliament Enactment',

Anuguru Manohar, HC advocate said the speakers and participants were of the view that government seems to have been worried about looting of public wealth under crypto currencies trading, an unregulated one. The enactment may also be having national interest in terms of tax collections besides public interest, mulling changes in IT laws to bring crypto currencies under the tax net, with some changes that could form part of the budget next year.

Union Revenue Secretary Tarun Bajaj is believed to have said that some people are already paying capital gains tax on the income from crypto currency, and in respect of Goods and Services Tax (GST). Also, the law is "very clear" that the rate would be applicable as those in the case of other services. The TCS (tax collected at source) could be introduced for crypto trading since the public makes out of trading the automatically paying tax prevails. So whatever GST rate they are taxed at, that will be applicable on them." "They have to get themselves registered. The GST law is very clear. If there is an activity, if there is a broker who is helping people and charging brokerage fee, GST would get charged."

The Standing Committee on Finance, chaired by BJP member Jayant Sinha, met the representatives of crypto exchanges, Block Chain and Crypto Assets Council (BACC). Among others arrived at the conclusion that crypto currencies should not be banned.; but they should be regulated.

Against this backdrop, controlled moderate regulation is still better as long as it's not stifling. The definition of decentralisation is still evolving. The next generation of crypto apps may require KYCs and filer Anguru Narayana Rao, Supreme Court advocate was the chief speaker at the seminar. Retired IAS officer NRC Ramana Rao was the chief.